According to media outlet Chosun Ilbo on January 2, Hook Entertainment is facing suspicions of evading thousands of dollars in taxes using a "cash-only" method of MD sales at singer Lee Sun Hee's solo concerts. 

From 2016 through 2019, Lee Sun Hee held two domestic tours totaling 46 shows across numerous cities in South Korea. Known and loved by Koreans as a "national singer" for her powerful voice, Lee Sun Hee delivered a memorable performance each time, leaving attendees in awe. 

Meanwhile, outside of the concert venue, Hook Entertainment frequently set up MD booths carrying exclusive signed CDs, signed and framed photographs, and more. A signed CD cost 25,000 KRW (~ $20 USD) per CD, while a framed photograph cost 40,000 KRW (~ $32 USD).

Many fans who stepped up to the MD booth to purchase such goods asked, "Do you accept card?". The sales reps replied, "These goods are event exclusive items, so we can only accept cash."

According to Chosun Ilbo, sales of Lee Sun Hee's concert MD from 2016 through 2019 amounted to approximately 1.1 billion KRW (~ $900,000 USD). Of those sales, Hook Entertainment only reported 21.9 million KRW (~ $17,300 USD) in the agency's federal tax report, most of which came from credit card transactions offered at a select few venues, to cash purchases where receipts were provided.

As a result, a little over 1 billion KRW of Lee Sun Hee's concert MD sales went unreported. In fact, after most of these shows came to an end, an envelope full of cash (the day's MD sales) was hand-delivered to Hook Entertainment's CEO Kwon Jin Young soon afterward. 

It's now been revealed that the above suspicions are part of the reason why the National Tax Service launched an investigation at Hook Entertainment headquarters earlier this year.

Currently, Hook Entertainment is denying all of the above accusations, claiming that the agency "never demanded that fans pay cash for MD", and that "cash earned from MD sales were usually used to treat the concert staff to dinner".